Proposed placing

About this update from Schroder European Real Estate Investment Trust Plc

[{"type":"text","content":"\n \nRNS Number : 7141N Schroder Eur Real Est Inv Trust PLC 02 February 2016  \n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN.\n \n \nSCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC\nProposed placing\n2 February 2016\n \nThe Board of Schroder European Real Estate Investment Trust PLC (the 'Company'), today announces a proposal to issue up to 10.6 million new Ordinary Shares at 104 pence per new Ordinary Share to raise gross proceeds of approximately £11.0 million by way of a placing (the 'Placing') pursuant to the terms and conditions of the Placing Programme established under the prospectus issued by the Company dated 11 November 2015 (the 'Prospectus').\n \nBackground\nIn December 2015 the Company raised approximately £108 million through an initial public offering ('IPO') in the UK and South Africa to invest in commercial real estate in Continental Europe. Since IPO the Company has exchanged on approximately €62 million of assets, comprising a Parisian office for €37.5 million at a net initial yield of 5.7% and a retail warehouse in Berlin for €24.25 million at a net initial yield of 6.2%. There is a pipeline of other assets at various stages of advancement where terms are being negotiated or are under review. The Investment Manager and the Board remain confident that the IPO proceeds will be deployed in line with their timing expectations at launch and remain committed to growing the Company.\n \nFollowing interest from both existing and prospective investors in South Africa and the UK, the Board is therefore proposing to issue new Ordinary Shares under a placing pursuant to the Placing Programme.\n \nProposed placing\n \nUnder the Placing, subject to compliance with the Act and the Articles, the Company is proposing to issue up to 10.6 million new Ordinary Shares at 104 pence per new Ordinary Share (the 'Placing Price') to raise gross proceeds of up to approximately £11.0 million. The Placing Price is based on the prevailing unaudited NAV per Share (which is estimated to be 101 pence) plus a premium to cover the costs of the Placing. \n \nThe Placing is expected to close at 3.00 pm UK time (5.00 pm SA time) on Thursday 4 February 2016, but may close earlier (or later) at the absolute discretion...

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